So much to talk about, so much to do, and so little time and will for any of it. TGIF! I hope everyone has had a good and productive week. I’ve been thinking a lot about investing lately (mostly thanks to mirco-investment apps like Acorn and Stash), so I thought I would start the weekend off with a review of a book on a particular kind of investment: real estate. Today, I’m reviewing Modern Real Estate Investing by John Harvey.
There is no such thing as “easy money.” Some sources of income, though, are easier than others, even in the elaborate and confusing world of investment. But with the wide variety of opportunities and significant risks, which investment is the easiest option? There is no “one-size-fits-all” sort of investment guaranteed to be easy and right for everyone. Nevertheless, the experts at Cornerstone Real Estate Investment Services recommend those looking for a truly passive, tax-sheltered income consider a little-know kind of real estate investment for an easy monthly income: a Delaware Statutory Trust, or DST.
Image retrieved from Amazon
In their new book Modern Real Estate Investing, John Harvey, David Kangas, and Trawnegan Gall of the Cornerstone firm give readers an in-depth analysis of this unique investment category. The book covers almost everything that a potential investor would want to know: what a DST is, its history, the advantages and disadvantages, the risks, etc. Case studies, charts, tables, and other visual aids accompany the information, making the more complicated concepts accessible. By the end, readers will have everything they need in order to make an informed decision on such an investment; whatever they don’t understand, the appendices and list of resources in the final pages can surely help clear up.
First and foremost, I should mention that the writers are surprisingly balanced in their presentation of the information. Of course, they focus on the positives of the DST as they are trying to convince readers that it is a viable investment opportunity. Regardless, they also thoroughly cover the disadvantages and risks. They do not hide anything just because it will make the option seem less appealing; instead, they show the reader everything about the trust and the structure behind it, even the illiquidity and lack of control over the property. Yet they also emphasize that the good outweighs the bad, allowing readers to make their own decisions while providing them with some necessary guidance.
I must say that this is not a light read. Given the subject matter, Modern Real Estate Investing utilizes a lot of financial and legal jargon. Fortunately, the writers explain each concept enough that even a novice will, eventually, understand what is being said; just don’t expect the experience to be effortless on the reader’s part. The topic also makes the writing rather dry. However, it picks up when discussing the advantages of a DST and when demonstrating the potential financial gain. The visual aids and case studies, which are themselves diverse and fascinating, keep the reader from being too overwhelmed by the facts. As all the information is crucial, one must just take the dull with the exciting.
That being said, this book is a must-read for anyone looking to enter the world of investment or diversify their portfolio. Career people wanting to supplement their income will especially need this book. As the writers explain, the DST is passive income that does not require the investor to take care of the property as other real estate investments do, and so the DST is ideal for people who simply cannot devote the time to being a landlord or hands-on investor. First-time investors will also appreciate the comparisons with other forms of investment, which will help them to decide whether or not the DST is the right investment for them to make.
Now, not everyone should read this book. In all honesty, those with lower incomes will not find it very useful. After all, the average investment for a DST is $100,000 ($25,000 for a direct investment). At more than 300 pages long, this book would take too much time from those without true interest in investment. Clearly, the writers are not presenting a “get rich quick” scheme. Still, Modern Real Estate Investing is an eye-opening glimpse into the structure and process of some forms of investing, and so those with a genuine interest in investing, regardless of income, will find it worth the read.Overall, Modern Real Estate Investing by John Harvey, David Kangas, and Trawnegan Gall is both informative and helpful. The writing isn’t the most engaging, but you will not find a more comprehensive guide to the DST. Best of all, as one author is the owner of Cornerstone and all three are licensed general securities representatives, you know the writers know what they are talking about. Before making any real estate investment decisions, read this book. You’ll be glad that you did.
You can buy a paperback copy of Modern Real Estate Investing by John Harvey on Amazon and through Barnes & Noble.
Do you know of a book I should read? E-mail me at thewritersscrapbin@gmail.com and let me know!
Designed by Stephanie Hoogstad circa 2011
even though you said “DST is ideal for people who simply cannot devote the time to being a landlord or hands-on investor” as if it’s addressing rich people only, still, i do like the concept of addressing landlords as “investors”. it gives me a sense that you don’t have to own a property to be a landlord. certainly taking a loan from a bank makes the two investors in the property. or that’s how i interpret it O:)